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Tesla shares close lower on Thursday, delivery waiting time for Model Y in China reduced to 4 weeks

Tesla Inc (TSLA) announced on Thursday that the delivery waiting time for its Model 3 and Model Y vehicles in China had been reduced, as the company increases production at its Shanghai facility following production line upgrade.

The waiting time for the rear-wheel drive Model Y SUV is now cut to 4 to 8 weeks, Tesla said. Meanwhile, the delivery waiting time for other versions of the SUV and for Model 3 sedans is now 12 to 20 weeks.

Previously, a buyer in China needed to wait for 8 to 24 weeks after ordering Tesla’s best-selling models.

The US company has finished a major upgrade of the production lines in Shanghai and output is being increased, as it aims to make 22,000 Model 3 and Model Y vehicles combined per week.

Still, the electric car maker is struggling to ramp up production at its facilities in Berlin and Texas, while output losses during a two-month pandemic-related lockdown in Shanghai delivered a blow to Tesla’s second-quarter profit margin.

Tesla shares closed lower for a third consecutive trading session on NASDAQ on Thursday. The stock went down 0.37% ($3.38) to $908.61, after touching an intraday low at $905.56 and an intraday high at $919.50 respectively.

The shares of Tesla Inc have retreated 14.02% so far in 2022 compared with a 10.12% loss for the benchmark index, S&P 500 (SPX).

In 2021, Tesla Inc’s stock went up 49.76%, thus, it outperformed the S&P 500, which registered a 26.89% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 18 out of 29 surveyed investment analysts had rated Tesla Inc’s stock as “Buy”, while 6 – as “Sell”. The median price target on the stock stands at $921.59. is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

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